Note from Sudan Watch Editor: What a story, you could not make this up. The UK's Serious Fraud Office (SFO) is investigating the world’s biggest printer of banknotes over suspected corruption in South Sudan.
Shares of the 206-year-old UK company De La Rue producing Bank of England notes have more than halved in past year. The company produces notes for countries worldwide and is also the biggest commercial printer of passports. De La Rue said it was cooperating with the SFO.
Full story in two news reports here below.
Shares of the 206-year-old UK company De La Rue producing Bank of England notes have more than halved in past year. The company produces notes for countries worldwide and is also the biggest commercial printer of passports. De La Rue said it was cooperating with the SFO.
Full story in two news reports here below.
Article from The Guardian
By SEAN FARRELL
Date: Tuesday, 23 July 2019 20.25 BST
Serious Fraud Office investigates De La Rue over South Sudan operations
The Serious Fraud Office is investigating the world’s biggest printer of banknotes over suspected corruption in South Sudan.
The SFO said it was examining how the UK company De La Rue, which produces notes for the Bank of England, and associated individuals conducted business in the African country.
De La Rue said it was cooperating with the SFO, which investigates serious fraud, bribery and corruption. The Basingstoke-based company and the SFO declined to give further details about the investigation.
“Given the early stage of these matters, it is not possible to predict reliably what effect their outcome may have on De La Rue,” the company said.
De La Rue has done business with South Sudan since the country was established in 2011, designing and printing the country’s banknotes. The company produces notes for countries worldwide and is also the biggest commercial printer of passports.
The SFO’s attention adds to problems for De La Rue, which is looking for a new chief executive after Martin Sutherland agreed to leave following two profit warnings and the loss of a £490m contract to print the UK’s post-Brexit blue passport.
De La Rue shares closed down 15.8% at 251p on Tuesday. The shares have more than halved in the past year as the company has suffered poor trading and a series of setbacks.
The 206-year-old firm reported a 77% drop in annual profit in May and warned that profit would fall further this year as it faced tough competition. After losing out to a foreign rival to print the new UK passport, Sutherland said the decision risked jobs and that he would appeal, but gave up a month later.
De La Rue’s chairman, Philip Graham Rogerson, will step down once Sutherland’s replacement is found. The company’s senior independent director has also said he will quit by the end of 2019.
Rogerson and De La Rue’s board will face unhappy shareholders at its annual general meeting on Thursday.
Last week the company rejected a call by its third-biggest shareholder, Crystal Amber, for Rogerson to stand down at the AGM. The activist investor has repeatedly criticised Rogerson’s performance.
The SFO has investigated De La Rue twice in the past 12 years. In 2010 it notified the SFO that some employees had falsified paper specification certificates, costing it at least £35m. Another investigation launched in 2007 was closed with no action taken against the company or employees.
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Article from The Northern Echo, UK
By NICK GULLON
Reporter (Tees Valley)
Date: 23 July 2019
'Suspected corruption' investigation at De La Rue's South Sudan business
Photo: A rare look inside De La Rue Gateshead
SHARES in a North-East passport and bank note manufacturer dived yesterday after it said the Serious Fraud Office (SFO) has opened an investigation into "suspected corruption" related to business in South Sudan.
De La Rue, which has a plant in Gateshead, saw shares dive 12 per cent after it informed investors about the investigation.
In a short update to shareholders, De La Rue said: "The UK Serious Fraud Office has informed De La Rue that it has opened an investigation into the De La Rue group and its associated persons in relation to suspected corruption in the conduct of business in South Sudan.
"Given the early stage of these matters, it is not possible to predict reliably what effect their outcome may have on De La Rue."
It said that it intends to co-operate with the SFO in relation to the investigation and said it will provide a further update when appropriate.
De La Rue has worked in South Sudan since first designing and manufacturing a new currency for the country's creation in 2011.
The Basingstoke-based printer has already had a turbulent month, after it blamed the Government’s decision last year to give the post-Brexit passport printing contract to a French company for the potential loss of 170 jobs in Gateshead.
Trade union Unite said the announcement that the company has begun consultation on the future of 170 skilled printing jobs working on the foreign currency contracts came on top of the 100 passport printing jobs due to go in the autumn.
It added the Government’s "short-sighted and blinkered decision" had "seriously undermined" the financial viability of the Gateshead operation.
If the redundancies go ahead, there will still be 200 workers doing currency printing at Gateshead.
A De La Rue spokesperson said at the time: “As the world’s largest commercial banknote printer we regularly review our operational footprint to ensure it meets demand. We are in the final stages of a restructuring programme to ensure we continue to be competitive."
Shareholders are due to vote on the future of chairman Philip Rogerson, as well as executive pay, at the company's annual general meeting tomorrow.
The company is also in the midst of a leadership reshuffle after chief executive Martin Sutherland announced in May that he would quit the firm following a string of profit warnings.
Last week, the firm hit out at Crystal Amber, its third-biggest investor, and described its threats against the chairman as "precipitous and destabilising".
HERE IS A COPY OF 1 COMMENT
Corruption with African countries??? Printing currency? -----No sh!t Sherlock!!